A Research Firm Correctly Predicted The Downfall Of A Tech Company, And Now Other Stocks It Covers Are Tanking

Over the weekend, Let's Gowex, a Spanish company that provided
free WiFi services, went out of business after independent
research firm Gotham City Research published a scathing report
that said most of the company's revenues were fraudulent.

Monday morning, other companies that have been targeted by Gotham
City previously are feeling the pressure.

In February, Gotham City
issued a report that said 60% of Blucora's revenue will
evaporate in the coming quarters. Since that report, Blucora's
shares are down more than 20%.

Last year, Gotham City also published critical reports on The
Tile Shop and Ebix.

Gotham City said
Tile Shop shares are worth no more than $3.34; shares of Tile
Shop are currently trading at about $14.40, but are down more
than 30% since Gotham City's report.

Let's Gowex had a market cap of about €1.43 billion. Each of
Blucora, Tile Shop, and Ebix are smaller than $700 million and
are relatively lightly traded and as a result could be
susceptible to increasing concern from investors after Gotham
nailed Let's Gowex.

In morning trade, shares of Blucora were down 1.4%, Tile Shop
shares were down 1%, and Ebix shares were down more than 2.5%.